FTSE 100 watch: Footsie dips as investors mull over earnings

The UK benchmark index has fallen into the red in today’s session, pressured by falls in Centrica (LON:CNA) and BAE Systems (LON:BA), whose results have disappointed investors. Barclays (LON:BARC) and RELX (LON:REL) are outperforming the FTSE 100 following their respective updates.

Centrica and BAE pressure index

As of 12:32 GMT, the Footsie had given up 66.74 points to stand 0.92 percent lower at 7,161.88. Sentiment has been subdued despite positive leads from the US and Asia, with investors focusing on a slew of corporate results amid the ongoing earnings season.

Centrica has been one of the session’s most prominent fallers after reporting ‘mixed’ performance for 2018 and cautioning that it expects the energy regulator’s price cap to impact its cash flow this year. The British Gas owner’s shares are 11.84 percent down at 120.95p.

BAE Systems is also weighing on the Footsie after saying that the current position of Germany’s government on export licensing might affect the company’s deals with Saudi Arabia. Shares in the British defence contractor are 6.52 percent worse off at 471.50p.

Barclays and RELX in demand

In blue-chip risers, Barclays’ shares are up 0.76 percent at 162.10p even as the blue-chip lender posted smaller annual profit. The lender, however, signalled plans for progressive ordinary dividend and share buybacks “as and when appropriate”.

“These numbers have been well received on the basis of ‘jam tomorrow,’ as the bank continues to suffer from litigation and conduct fines, whilst growing strongly excluding these charges,” commented Richard Hunter, the head of markets at interactive investor, as quoted by Proactive Investors.

RELX’s share price meanwhile is 3.77 percent higher at 1,748.50p after the company posted underlying revenue growth for last year and announced a £600-million share buyback.

The FTSE 100 was 0.96 percent down at 7,159.29 points as of 13:04 GMT on Thursday, 21 February 2019.